In the News
Reputation new risk hedge: $13.8 trillion in shareholder value tied to corporate trust
06 October 2025
Our new USA Reputation Valuation report reveals that corporate reputation now accounts for 26% of the total market capitalization of the S&P 500, representing $13.8 trillion of shareholder value.
As market volatility, political division, and stakeholder scrutiny intensify, reputation has emerged as a strategic asset and a measurable lever for risk mitigation and value creation. The 2025 U.S. Reputation Valuation Report - the only comprehensive, investor-focused analysis of its kind - quantifies how reputation drives market performance and where companies can act to improve perception and unlock growth.
“Reputation is no longer intangible - it’s investable,” said Sandra Macleod, Group CEO of Echo Research. “In a time when investor confidence can swing on perception as much as performance, understanding the architecture of your reputation is a board-level imperative.”
Key Findings
- Reputation is capital value
On average, $27 billion per company in the S&P 500 is tied to reputation through factors such as management quality, financial soundness, innovation, and long-term value potential. - Leaders vs. laggards
96% of companies now generate net positive returns from reputation. Yet the bottom 2% - those eroding reputation - collectively destroy $126 billion in market value, as investor trust is hit. - Not all drivers are equal
The most powerful reputation levers in 2025 are long-term value potential and financial soundness - signalling that investors are rewarding evidence-based leadership and future readiness over short-term initiatives. - Innovation on the rise
While not the largest current driver, innovation now delivers the greatest growth potential, serving as the most powerful future lever for companies seeking to improve performance.
Why it matters
Echo’s analysis, powered by the Reputation Dividend valuation model, enables companies to:
- Quantify the financial value of intangible assets
- Benchmark their reputational strength against peers
- Prioritize actions that strengthen resilience and reduce risk
In an era where reputation functions as both a growth engine and a risk buffer, the findings underscore a major shift in corporate accountability: reputation is no longer a soft metric. It’s a hard, measurable asset influencing access to capital, customer loyalty, and talent retention.
A call to the c-suite
“Reputation is your license to operate, your risk-buffer, and your growth engine,” added Macleod. “But you can’t manage what you don’t measure. If your stakeholders are valuing you based on perceptions, it’s time to own that narrative, grounded in evidence, not assumption.”
To help boards and executive teams take action, Echo offers custom Reputation Diagnostics, benchmarked to sector peers and mapped to nine dimensions of reputation, from innovation and governance to people management and ESG performance.
About the report
The 2025 U.S. Reputation Valuation Report draws on 17 years of historical market data and executive perception analysis, revealing how reputation has evolved from a communications issue to a core determinant of enterprise value.
Download the full report here
